Asset protection trusts are a financial-planning trust vehicle. These allow you to place your assets into a trust, in order to shield them from creditors. A Wyoming asset protection trust (APT) is the strongest protection that you can find. You might want to establish this type of trust if you are worried about your assets being a part of a settlement or a court judgment against your estate.
There are many types of trusts, but an asset protection trust is different. APTs specifically shield your property against creditors and they are irrevocable.
Essentially this means that because they are an irrevocable asset protection trust, any assets transferred into the trust will be permanent. No matter what occurs, the trust would own the assets, and can only be managed by the trustee. Technically, they will no longer be in your ownership which, in turn, protects those assets.
The opposite would be a revocable asset protection trust, meaning that the trust terms can be changed at any time.
There are two main types of asset protection trusts: domestic asset protection trusts and foreign asset protection trusts.
The most important benefit of an APT is that you can protect your assets from creditors regardless of what happens. No one ever plans to be sued, but if it does happen you can ensure that your assets will be safe.
Although you cannot move your assets once they are placed into the trust, it does ensure that they will be safe for your beneficiaries in the event of your sudden death. It is also a protection for your beneficiaries should you suddenly run into legal trouble.
The probate process can be frustrating for your heirs after you pass away. Essentially, probate is the process in which the executor will collect your assets, pay off your debts, and then distribute your assets to your heirs according to your will. Although this is never something you want to think about, helping your heirs avoid the probate process will not only save them time but also money and heartache.
When you use an APT you give yourself protection against any claims such as personal injury claims that occur in your life. You will also protect your business in the event you default on any type of personal loan.
Although you can fund an asset protection trust with cash, you can do so with much more. This might include real estate, LLCs, and other assets. It should also include your saving accounts, investments, business interests, and any notes payable to you.
You might want to consider an asset protection trust if you have a high net worth. This will provide you with the knowledge that your assets are safe regardless of what happens in your life. Additionally, if you own businesses, an asset protection trust can prove essential. By assuring that your personal assets are safeguarded against creditors, your assets will be safe for your beneficiaries.